Can I retire at age 40 with 696,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $696,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18.6%
1 years$57,475$56,963$56,464$55,976$55,500$53,573
2 years$28,453$27,923$27,410$26,912$26,429$24,508
3 years$18,780$18,248$17,736$17,243$16,767$14,912
4 years$13,945$13,414$12,907$12,422$11,959$10,183
5 years$11,044$10,517$10,016$9,541$9,091$7,400
6 years$9,111$8,588$8,095$7,630$7,193$5,589
7 years$7,731$7,212$6,727$6,273$5,850$4,331
8 years$6,696$6,182$5,705$5,263$4,853$3,419
9 years$5,892$5,383$4,914$4,483$4,087$2,736
10 years$5,249$4,745$4,284$3,864$3,482$2,211
11 years$4,723$4,224$3,771$3,363$2,995$1,802
12 years$4,285$3,791$3,347$2,950$2,595$1,477
13 years$3,915$3,426$2,990$2,604$2,263$1,217
14 years$3,598$3,114$2,687$2,312$1,984$1,007
15 years$3,324$2,845$2,426$2,062$1,747$836
16 years$3,084$2,610$2,199$1,846$1,544$696
17 years$2,872$2,404$2,001$1,659$1,369$580
18 years$2,684$2,221$1,827$1,495$1,217$485
19 years$2,516$2,059$1,673$1,351$1,085$406
20 years$2,365$1,913$1,535$1,223$969$340
21 years$2,229$1,782$1,412$1,110$867$285
22 years$2,105$1,663$1,301$1,009$777$239
23 years$1,993$1,556$1,201$919$698$201
24 years$1,889$1,458$1,111$838$627$169
25 years$1,794$1,368$1,029$766$564$142
26 years$1,707$1,286$954$700$508$120
27 years$1,626$1,210$886$641$458$101
28 years$1,551$1,140$824$587$414$85
29 years$1,482$1,075$767$538$373$71
30 years$1,417$1,016$714$494$337$60
31 years$1,356$960$666$454$305$51
32 years$1,300$908$621$417$276$43
33 years$1,246$860$580$384$250$36
34 years$1,197$815$542$353$226$30
35 years$1,150$773$507$325$205$26
36 years$1,105$734$474$299$186$21
37 years$1,064$697$444$276$168$18
38 years$1,024$663$415$254$152$15
39 years$987$630$389$234$138$13
40 years$952$599$365$216$125$11
41 years$918$571$342$199$114$9
42 years$886$543$321$184$103$8
43 years$856$518$301$170$94$7
44 years$827$494$283$157$85$5
45 years$799$471$265$145$77$5
46 years$773$449$249$134$70$4
47 years$748$428$234$124$64$3
48 years$724$409$220$114$58$3
49 years$701$391$207$106$52$2
50 years$680$373$194$98$48$2

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $696,000, adding $4,466 every year, while hoping to spend $28,916 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 86/7/7 Blend
39$696,000$696,000$696,000$696,000
40$771,599$734,711$723,923$837,151
41$819,535$739,945$717,408$885,802
42$871,392$744,467$709,705$934,813
43$927,539$748,211$700,745$987,745
44$988,382$751,106$690,454$1,044,971
45$1,054,367$753,081$678,754$1,106,904
46$1,125,985$754,054$665,565$1,173,998
47$1,203,777$753,944$650,803$1,246,752
48$1,288,336$752,661$634,378$1,325,717
49$1,380,316$750,111$616,200$1,411,499
50$1,480,435$746,194$596,170$1,504,764
51$1,589,486$740,804$574,188$1,606,247
52$1,708,339$733,829$550,148$1,716,758
53$1,837,951$725,148$523,940$1,837,188
54$1,979,378$714,636$495,448$1,968,519
55$2,133,779$702,158$464,550$2,111,833
56$2,302,434$687,573$431,122$2,268,321
57$2,486,748$670,730$395,030$2,439,296
58$2,688,270$651,470$356,138$2,626,203
59$2,908,706$629,624$314,301$2,830,637
60$3,149,933$605,014$269,368$3,054,353
61$3,414,017$577,451$221,183$3,299,285
62$3,703,236$546,736$169,582$3,567,563
63$4,020,097$512,656$114,394$3,861,537
64$4,367,360$474,990$55,439$4,183,794
65$4,748,066$433,499$0$4,537,184
66$5,165,564$387,936$0$4,925,407
67$5,623,542$338,036$0$5,355,823
68$6,126,064$283,520$0$5,828,115
69$6,677,603$224,094$0$6,346,504
70$7,283,091$159,446$0$6,915,638
71$7,947,955$89,248$0$7,540,639
72$8,678,179$13,153$0$8,227,151
73$9,480,350$0$0$8,981,391
74$10,361,729$0$0$9,815,541
75$11,330,311$0$0$10,733,345
76$12,394,906$0$0$11,742,138
77$13,565,221$0$0$12,851,119
78$14,851,948$0$0$14,070,421
79$16,266,868$0$0$15,411,209
80$17,822,961$0$0$16,885,785
81$19,534,526$0$0$18,507,700
82$21,417,320$0$0$20,291,886
83$23,488,703$0$0$22,254,796
84$25,767,802$0$0$24,414,557
85$28,275,691$0$0$26,791,142
86$31,035,591$0$0$29,406,556
87$34,073,088$0$0$32,285,048
88$37,416,374$0$0$35,453,336
89$41,096,511$0$0$38,940,858
90$45,147,728$0$0$42,780,053
91$49,607,740$0$0$47,006,664
92$54,518,103$0$0$51,660,074
93$59,924,610$0$0$56,783,683
94$65,877,719$0$0$62,425,309
95$72,433,031$0$0$68,637,647
96$79,651,811$0$0$75,478,759
97$87,601,572$0$0$83,012,627
98$96,356,704$0$0$91,309,753
99$105,999,182$0$0$100,447,826
100$116,619,337$0$0$110,512,453